This work shows the importance of evaluating the efficiency of the human resource management system in the analysis of transfer/adaptation costs of human resources practices in multinational enterprises. In addition to the cost factors that have traditionally been considered, system cost and opportunity cost are examined. Concretely, I propose to estimate the latter in accordance with the quality of the human resources function and conclude that the optimum strategic option would depend on the effectiveness of the system as a source of competitive advantage.
Management Research: The Journal of the Iberoamerican Academy of Management – Emerald Publishing
Published: Apr 1, 2008
Keywords: HRM; Cost factors; Multinational enterprises